Checklist

Listed below is an elaborate checklist which one should definitely consult before buying property. Please take time in going through each and every point listed below.

Title Deed

The property title deed is the legal document which proves the ownership of property. The title deed presents certain rights and freedom to the person who holds it and such deeds are required where person wants to transfer his ownership. It includes description of property along with the person’s name that holds it. An official seal is used to point out that the deed is recorded officially and normally it is signed by an owner(s) and a witness usually a govt. official. So as a buyer you have to ask for original deed not a Xerox because sometimes the seller might have taken a loan and given in the original deed.

Encumbrance Certificate

The encumbrance means any liabilities or charges created on any property in terms of any security of any debit by property owner which is not discharged as on date. It might be held as security against bank loan against property. Encumbrance certificate is necessary to check the title clearance of property when buying any property. This legal document is issued by registering authority.

Type Of Property

It is better to find out if the property is freehold, leasehold or a Government accommodation. Freehold property means freehold property means that you own the land where the property is built while leasehold property is where you have the right to live in a property for a stipulated period of time.

Pledged Property

Many property owners take bank loan by pledging their property. So check they have paid the entire amount due when you are going to buy that property. If they have paid entire amount due then bank has issued them a “Release certificate”. This release certificate is necessary whenever you want to take any loan in future.

Duty/Tax Receipts

Property taxes are first charge on property that is paid to government or municipality. So you have to make inquiry in government and municipal offices to ensure whether all tax has been paid as on date.

Sale Agreement/Deed

The sale agreement is done usually on a 100 Rs.  stamp papers. It includes the final actual amount, advance payment, time limit to pay due amount and how to pay in installments, time indication when the actual sale should take place. It also includes what to do to cover loss if one of buyer or seller makes default. This agreement can be done by an expert lawyer and signed by both the parties with two witnesses. After doing this agreement, if one from both parties makes any default then another one can take legal action against him.

Property Registration

All property sales will be held illegal unless the transaction is by means of a sale deed duly stamped and registered. After collecting and checking all the documents, you have to register land/ property at the Sub-Registrar or the SDM (Sub District Magistrates) of your area.

Measurement/Size of Property

It is sensible to measure the land before registering any property with authorized surveyor as you will avoid many problems coming in future. In this way you can ensure the measurements and borders of land are perfect and accurate and seller cannot dupe you by mentioning wrong figures in the documents.

Owner (s)/ NRI Owner

In some cases, it’s possible that there will be more than one owner of property. In that case get No Objection Certificate or Release certificate from other owners. An NRI can also sell his property in India. For this, he gives Power of Attorney to third person whom he gives rights for selling the property on behalf of him. The most important thing is to ensure the Power of Attorney is witnessed and is duly signed by an officer of the Indian Embassy only.

Visit Property Matters today or if you want us to call you back, please fill the contact us form….and we’ll be happy to help you!